CO129-486 - Public Offices - 1924 — Page 370

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bring about the removal of the Yuanaxese and other extra-provinsial troops, and to establish a Government rum by Cantonese for the benefit of Canton.

With

these aims in themselves one may well sympathing, impossible though it may be for us to sountenance the methodu

by which it was sought to attain them. The total number

of armed Volunteers in Canton is 8000, with a further

With the consignment 20,000 in the rest of the Provinse. brought by the "Hay" it was hoped to arm at least

5,000 more.

I gather that a me months ago Chan Lim-Fak represented to Kr. Donald Forbes, the local Agent of the Hongkong and Shanghai Banic, the avantages that would accrue to trade if the extra provincial troops that were battening on the City sad perpetunting a reiga of chaos could be expelled and pease and order restored.

He represented that this could best be brought about through the Merchant Volunteers. Owing to the Arma Embargo Agreement, however, it was impossible to obtain the requisite minitions openly, and it was therefore found

Chan had always necessary to smuggle them into Canton.

exercised great influence over Mr. Forbes, and the latter apparently consented to submit the proposal to Mr. A.G. Stephen, the Chief Manager of the Bank in Hongkong,

The situation in Canton had already sansed the

Bank authorities serious sonsern. It is stated that during 1925 a sum of no less then $100,000,000 was wrang out of the City in the shape of taxes both regular and irregular, military requisitions and so forth. this sun only about $80,000,000 was expended locally, the balance of $70,000,000 having been levied by the non-

who remitted Cantonese troops, shiefly the Yunnanese,

of

the money to their om Provinses Canton was thus being rapidly drained of money, the deposits in the Hongkong

and